Return to the small business regulation
Entrepreneurs operating in Austria whose total annual turnover in the relevant tax period does not exceed EUR 55,000 are classified as small entrepreneurs. This amount results from the sum of all entrepreneurial activities (e.g. crafts, commercial operations, self-employment, rentals, agriculture and forestry). This group is exempt from the obligation to charge VAT. However, they also do not have the option of reclaiming the input tax paid from the tax office.
This regulation can be waived by submitting an option declaration to the tax office. This can prove to be advantageous, especially in the case of planned larger investments with the right to input tax deduction. If you wish to waive your standard taxation, please contact your tax officer as soon as possible.
A Revocation of this declaration However, this is only possible after five years and must be by the end of January of the calendar year in which the withdrawal is to apply - i.e. by 31 January 2026. If this deadline is not met, the sales remain subject to VAT.
Choice of monthly UVA levy with first calendar month
There is a legal obligation to submit monthly advance VAT returns (UVA) for entrepreneurs whose turnover exceeded EUR 100,000 net in the previous calendar year. If you exceeded this threshold for the first time in the previous year, you must submit the VAT return every month from 2026. If turnover in the previous year was less than EUR 100,000, the advance return must be submitted quarterly.
However, there is also the option here of UVA voluntary monthly pre-notification. This decision must by 15 March 2026 at the latest This can be done by submitting the advance return for January to the tax office on time.
Please note that UVA declarations must always be submitted monthly if the financial year is different; quarterly declarations are not permitted in this case.
You can see an overview here:
| Turnover | UVA levy |
| EUR 0,- to 55.000,- | small business:in | No UVA tax |
| EUR 0,- up to 55.000,- | Waiver of small business exemption | No UVA levy, but timely payment of VAT arrears per quarter |
| EUR 55,000.00 to EUR 100,000.00 | quarterly (optional monthly) |
| over EUR 100,000 | monthly |
Status as of January 2025:
Changes due to the Tax Amendment Act 2024
The Tax Amendment Act 2024 brought extensive changes to the small business regulation in the area of VAT. From 1 January 2025, companies from other EU member states will also be able to benefit from the tax exemption for the first time. At the same time, the turnover limits will be raised and the rules for exceeding them adjusted.
Increase in turnover limits
Previously, the turnover limit for the small business regulation was EUR 35,000 net per year, which corresponds to a gross limit of EUR 42,000 at a tax rate of 20 %. It was also permitted to exceed this limit once by up to 15 % within a period of five years.
From 2025, the turnover limit will be increased to EUR 55,000 gross. Unlike previously, the calculation will no longer be based on assumed net values. In addition, the new regulation takes into account not only the turnover of the current year, but also that of the previous year.
New procedure for overruns
Under the previous regulation, exceeding the turnover threshold meant that the tax exemption was retroactively lost for the entire calendar year. This meant a burden for sales to private individuals in particular, as the VAT had to be paid retrospectively by the company.
The following changes apply with the new regulation:
- No retroactive loss of exemption: The tax liability only applies from the turnover that exceeds the limit. Turnover realised before then remains tax-free.
- Tolerance regulation of 10 %: Exceeding the turnover limit by up to 10 % does not lead to VAT liability until the following calendar year.
- Immediate tax liability if the limit is exceeded by more than 10 %: If the limit is exceeded by more than 10 %, VAT is payable immediately - but only for the excess amount and all further sales in the year.
Extension to companies from the EU
The reform extends the small business regulation to companies from other EU member states. The tax exemption can be utilised under the following conditions:
- The company's Union-wide annual turnover does not exceed the limit of EUR 100,000 either in the previous calendar year or in the current year.
- Turnover within the Member State remains below the small business threshold applicable there.
- The application for tax exemption is submitted in the country in which the company is based.
- If the EU-wide turnover of EUR 100,000 is exceeded, the exemption ends immediately with the turnover that exceeds the limit.
Issuing an EX-ID for small businesses
Companies that make use of the cross-border small business regulation receive a special VAT identification number with the suffix „-EX“ (EX-ID) after a successful application. This identifies the company as a small business and facilitates tax processing.
Status: 05.01.2026
Created: 07.01.2025
Source: BMF, WKO
Photo: Andrea Piacquadio
